Asian Session Notes 8/29/12

GBPJPY
Resistance: 124.39 minor / 124.64 moderate / 124.96 moderate
Support: 124.15 minor / 123.90 minor / 123.65 minor

GBPJPY ended up with a hammer in the daily charts as an earlier sell-off in Asia was fully reversed by the open of New York. Daily charts appear to have a bounce off the EMA lines with indicators looking mixed as stochastic crosses higher whil the macd has just crossed down. Intraday we have a confluence of buys from multiple time frames with stochastic overbought in 4H and hourly charts while the macd line has just crossed up in the 4H picture and has been bullish in hourly charts. Immediate risk calls for a push through the 124.39 resistance level for a test of 124.64 possibly 124.96. Consider sells coming off the 124.96 region.

EURUSD
Resistance: 1.2588 strong / 1.2626 minor / 1.2669 minor
Support: 1.2536 minor / 1.2488 minor / 1.2465 minor

Euro saw a strong rally Tuesday to retest the key resistance level at 1.2588 pulling daily stochastic into a new bullish crossover with the macd lines also pointing higher. From the lower time frames we appear to have a loss of momentum with with a spinning top and hanging man in the 4H candles though indicators still have an overbought stochastic and bullish crossover in macd. Hourly charts for their part has a confluence of bears in the making with macd and stochastic both looking poised to cross lower. Note we appear to be developing a possible double top from the 4H picture. Consider shorts from around 1.2576 yesterdays highs just under the strong resistance at 1.2588 with stops at 1.2600. Look for the double top pattern to be completed though it would take a break of the 1.2441 region a strong support just under the pattern breakout point, 1.2465 before we argue about trading the pattern itself.

AUDUSD
Resistance: 1.0368 strong / 1.0389 minor / 1.0425 minor
Support: 1.0344 moderate / 1.0324 minor / 1.0304 minor

Following the bearish breakout monday we saw a pause in Tuesday trading with AUDUSD ending up a spinning top. Daily indicators remain bearish with stochastic oversold and the macd’s dropping. In intraday charts we are seeing mixed signals from the 4H picture with stochastic crossing lower and macd’s flat above the signal. Hourly charts for their part has a a confluence of bears with stochastic just crossing lower along with a new bearish crossover in macd. With the 200D SMA as an immediate support we prefer getting a close below 1.0344 before jumping short though we will remain bearish as long as prices stay under 1.0368.

GBPUSD
Resistance: 1.5851 moderate / 1.590 minor / 1.5912 minor
Support: 1.5812 minor / 1.5775 strong / 1.5752 moderate

After a brief stay below 1.5775 GBPUSD managed a turn-around in the latter part of the Asian session eventually rallying to show a bounce off the 200D SMA and strong support. Daily indicators continue to have a bullish macd while stochastic is poised for a bullish crossover. In the lower time frames we have 4H stochastic overbought while macd is poised at a bullish crossover though momentum appears to have been lost with a possible mat hold in the making for candlesticks. Hourly charts has a confluence of buys. For now look for a buy on dips to the 1.5775 region with stops below yesterdays lows of 1.5753 for a bounce to 1.5851 possibly 1.5890.

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